Purchasing in Croatia

Purchasing in Croatia

The Russian buyers can purchase property in Croatia in two ways – filling out housing on the physical or legal person. The difference lies in the timing of the receipt of the right for the property and the size of the required costs. Buying property in Croatia on the individual is based on the principle of reciprocity. Russians can buy property (but not land without buildings) in the country on an individual, but as between Croatia and Russia an agreement of reciprocity has not signed yet, it is necessary to apply for permission to the Ministry of justice of Croatia. The term of getting the permit may take from six months to three years. Therefore, Russian citizens more often buy housing in the country for the registered in Croatia company – it is faster and simpler and the license granted immediately. Besides, vacant land can be registered for the company.

The right of ownership is registered after getting the permission from the Ministry. Purchasing property in Croatia as an individual, while you are waiting for permission in the name name of buyer “seal” is recorded in the registry as a sort of encumbrance, when the seller may dispose the property only with the consent of the buyer. Encumbrance is removed after obtaining a permission. In case of refusal of permission from the Ministry, the housing can be transferred for the company.

The purchase for registered in Croatia company is established and simple process that takes from one week to one month. Here you need to keep in mind that after registering a company, its activities will need to be supported, that will require certain financial costs.

Since February 2009, citizens of EU countries can buy property in the country on an equal basis with the Croats, that is, without receiving permission from the Ministry of justice. Perhaps Russian citizens, too, will get this right someday.

The buying process

Having defined the object of purchase, a preliminary contract is signed between the seller and the buyer, which may be notarized, but it is not necessary. Along with this, a deposit is paid which is usually 10% of cost of the purchase, its size is also negotiated between the buyer and the seller. All payments are in HRK. The amount is transferred to the account of the seller.

In the case of termination of the preliminary contract by fault of the buyer, the deposit remains with the seller. If the seller changes his mind, he returns the deposit in the double size.

Before that, a lawyer or a real estate agency checks the selected property. In the case of the transaction for a legal person, you can begin to register a company that will take approximately three working days. The founding documents are signed at personal presence of the owner, then the initial capital must be paid. Within two days a new firm is registered in the commercial court, then you need to open a bank account and make a print.

Individuals requires a passport, legal persons – extract from the register or a certified copy of the certificate of registration.

About in a month after signing the preliminary contract the basic contract is issued. Full payment shall be made after signing the main contract of sale of the property that very day. The buyer receives from the seller a document that contains a disclaimer of ownership from the previous owner and gives the right ofregistration of the property to the buyer, so-called tabularia statement. After obtaining permission from the Ministry of justice of Croatia the property is recorded by entering data about the new owner in the land registry.

If a purchase is made for an individual, then the lawyer prepares and sends a permission to purchase the property in the Ministry of justice of Croatia after the main contract is signed and notarized by a public notary.

Registration of the contract of sale with the tax authorities happens not later than 30 days after the signing of the main contract. Then within the specified period you must pay a tax of 5% of the property value, in case of delay a penalty will impose.


As a rule, property transactions in Croatia involve real estate agency. Agency commission is about 2-6% and is divided between the buyer and the seller.

The buyer pays a lump tax on transfer of ownership when buying a resale property in the amount of 5% of project cost.

Legal services are about 1-1. 5% of the value of the transaction. This includes the inspection of the property, registration of the new owner in the land register and preparing the contract of sale. In the case of a transaction involving a real estate agency, company representative verifies all documents as well as drafting of the contract of sale and subsequent registration of ownership of purchased housing. These services are included in agency commission.

Notary fees and translation services are about 500 Croatian kunas (70 Euro).

The costs of registration of the company are on average 1000 euros excluding the share capital. The share capital is 20,000 kunas (about 2,800 Euro). Accounting service company will cost 100 Euro plus VAT (25%) per month. Foreigners can sell the property in Croatia without any restrictions.

The sale of housing in the case of registration for the physical person, the tax on capital gains will not be charged if the property was owned for more than three years. If the owner owned the object less than three years, the tax will be 35% of the difference between the purchase price and sale price. Having a deal for the company, the tax on profit at sale will be 20%.